Thales INDIA Private Limited vs. Commissioner Of The Central Excise & Central Goods And Service Tax, Audit-Ii, Delhi & Anr.

Facts

The petitioner, Thales India Private Limited, filed a writ petition challenging audit proceedings initiated by the Commissioner of Central Excise & Central Goods and Service Tax, Audit-II, Delhi. An interim order was passed on September 2, 2019, staying further audit proceedings. The respondents (Commissioner and another authority) filed an application seeking vacation of this interim order. The respondents argued that the issue raised in the petition was no longer res integra, having been decided in their favor by this Court in Aargus Global Logistics Pvt. Ltd. Versus DOl & Ors. (W.P.(C) No. 2850/2020) and affirmed in Vianaar Homes Private Limited Vs. Assistant Commissioner (Circle-12), CGST, Audit-II, Delhi & Ors. (W.P(C) 2245/2020). The petitioner's counsel conceded that the issue was covered by these judgments.

Held

The Court held that the issue raised in the present writ petition was squarely covered by the previous judgments of this Court in Aargus Global Logistics Pvt. Ltd. (supra) and Vianaar Homes Private Limited (supra). The petitioner's counsel conceded this fact. The Court noted that the respondents had filed an application for vacation of the interim order dated September 2, 2019, and argued that the petition should be dismissed as the issue was decided in their favor. The reasoning was based on the binding precedent established by the coordinate benches in the cited cases. Consequently, the Court dismissed the writ petition and vacated the interim order. No specific provisions of the CGST Act or Rules were explicitly discussed in the judgment text provided, beyond the general context of audit proceedings.

Key Issues

1. Whether the issue raised in the present writ petition is covered by the previous judgments of this Court in Aargus Global Logistics Pvt. Ltd. (supra) and Vianaar Homes Private Limited (supra)? Petitioner's Argument: The petitioner's counsel fairly stated that the issue in the present writ petition is squarely covered against the petitioner by the judgment of this Court in Aargus Global Logistics Pvt. Ltd. (supra) and Vianaar Homes Private Limited (supra). Revenue/State's Argument: The respondents argued that the issue raised in the present petition already stands decided in their favor, and therefore, the petition deserves to be rejected and the interim order dated September 2, 2019, deserves to be modified/vacated immediately. They relied on the judgments in Aargus Global Logistics Pvt. Ltd. (supra) and Vianaar Homes Private Limited (supra).